Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups.
The study revealed that in 2018, the median net worth of a homeowner was $194,000. At the same time, the median net worth of renters was only $5,400.
These numbers reveal that the net worth of a homeowner is over 36 times greater than that of a renter.
Owning a home is a great way to build family wealth
As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.
Consistently, real estate is proven to be the best long-term investment. The study’s results showed that over 60% of Americans chose real estate, followed by stocks at 51% and then gold, savings accounts/CDs, or bonds.
Greater equity in your home gives you options
If you want to find out how you can use the increased equity in your house to move to a home that better fits your current lifestyle, let’s meet so I can help guide you through the process.